Car

amhill87 · August 2015

So it looks like keeping my old car and continuing to repair it will not be a viable option after this weekend. Saturday morning I drove to work did my time and came home. I drove all the way back to my boyfriend's house which is about an hour's drive on the highway and pull into my driveway when a loud bang comes from the front end of my car. The left ball joint I replaced last year snapped! Luckily it was in the driveway and not on the major highways I was on minutes earlier. I was completely shaken and called up my mechanic, who covered my towing, rental and all my repairs (he had to replace the axle we just replaced last month). My sticker is up in June of next year, so I am going to throw all my money at my pay off loan I have for my credit cards so I can get something newer. I am moving at the end of the year in with my boyfriend so my expenses will be going down, and plan on throwing my security deposit, tax refund and anything extra at the loan.

Erikan73 · August 2015

That sucks, but it does sound like you have a plan in place. Keep an eye out for deals on current cars. I know that one if the Kia dealerships in my area is having a deal on one of the small Kia's for $100.00 and $100 down. Of course I'm not sure of the terms. I know everyone says to buy a new used car but after seeing my co-worker who did that last year, have to put $1500.00 into her newer car already in the first year, I think sometimes it's better to get a base model new car that maybe smaller then what you would prefer for around the same price & not have to worry about repairs for a while.

vlagrl29 · August 2015

My in laws just bought a newer used car last year and bought an extended warranty on top of it - that's what I would do. We will most likely be buying DH another honda element next year, but sell his first.

simplyelise · August 2015

Don't get a new car. You just don't make enough to do that. Which isn't a knock, I don't make enough for a new car either. But you've got other debt and you have school to pay for. So you don't want a lot of your income tied up in car payments.

You've known this car was on its way out since the beginning of the year, right? I think back then you said you were going to start saving up for a different vehicle, so do you have some set aside for that?

I know you've had some bad luck with used cars, but that is just bad luck. I've only ever had routine maintenance and replacements with the 4 used cars I've owned. Maybe you can save up your overtime and anything extra to buy a $5k car that is a reliable brand. I recommend looking for the cars out there that someone is selling after grandma passed and were only used to go to the community center and church.

brij2006 · August 2015

If I'm remembering right, your budget is pretty tight to begin with and you're trying to get out from under some CC debt?

So if I am remembering correctly, do not go out and finance a car. It isn't going to help your situation. If it truly is "OMG can't drive it ever again" broken, then stop paying toward the cards and pinch every single penny, sell things you don't need, and buy something in cash. If that means it's a $1,000 car off a Facebook exchange site that looks horrible but still drives, then there you go.

Do you have a payment on this current car? Has the mechanic told you how much it will cost to repair? How much is this car worth (Kelly Blue Book Value)? Give us some more information.

short+sassy · August 2015

vlagrl29 said:

My in laws just bought a newer used car last year and bought an extended warranty on top of it - that's what I would do. We will most likely be buying DH another honda element next year, but sell his first.

I've bought extended warranties in the past for used cars I have purchased. They are kind of a rip-off, but it is still usually a lot cheaper to buy a used car with an extended/after market warranty than a new car.

brij2006 · August 2015

short+sassy said:

vlagrl29 said:

My in laws just bought a newer used car last year and bought an extended warranty on top of it - that's what I would do. We will most likely be buying DH another honda element next year, but sell his first.

I've bought extended warranties in the past for used cars I have purchased. They are kind of a rip-off, but it is still usually a lot cheaper to buy a used car with an extended/after market warranty than a new car.

Yeah, warranties are a rip-off. They don't account for wear and tear. Which is what needs fixed on a vehicle. And you add well over $2k to the price of the vehicle, for it to cover you for another 30-50k miles. In those miles, you may have a repair that costs you $600. That isn't wear and tear. Sorry, but brakes, roaters, shocks, oil, tires, etc are all wear and tear and aren't covered under a warranty anyways. Save yourself the money.

amhill87 · August 2015

So all of my repairs this week have been no charge. The ball joint that failed on Saturday was just over a year old, so he did not charge me anything because the part should not have failed this soon. Then this morning I had a leak under my car, apparently the o-ring he used in the kit to replace the stripped drainage plug started to leak. And then on my way home the check engine light came on and I called him up and he is coming to my work tomorrow no charge to check the code and fix it. He is so embarrassed with how my car is doing this week as I have been a customer for over 2 years.

In terms of my bills, I got a raise in July, and testing to move up a level at work for more money and due for my annual review, (celebrate 3 years next month). I need to pay my rent on my apartment until December, and then it will be $500 a month when I am living with my boyfriend. I got a loan through this company called Payoff and that is $271 a month, with $7116 current balance. My goal is to pay off that bad boy before I get another car. In terms of schooling, I am thinking of taking some time off, as my mind just needs a break and gives me a chance to build up finances.

On the topic of extended warranties, I bought one when I got my current car and it saved me a ton of money. Previous owner ran her with out oil and I ended up bending a rod in the motor. Had to replace the motor which is normally $2500 and I only had to pay $400.

vlagrl29 · August 2015

Maybe you should change who is fixing your car. We've tried some of those mom and pop car repair shops because they are cheaper than the dealership, but have been burned too many times. Now I either take my car to Christian Brothers or the dealership.

brij2006 · August 2015

I would highly recommend to take the time off school and work a 2nd job to get that debt paid off. Again, do not go into debt for a car. If you have already used a company called "payoff" to get things under control, then debt is not something you should be touching.

amhill87 · August 2015

Working a second job is not an option. With being a lead and overtime I work when available, it would not be possible for me to work one.

Secondly, your comment that I should not be touching debt comes off as quite judgmental and I can tell you did not even look up the company I use. Payoff is not a debt consolidation place, they offer loans to consolidate debt into one payment, and the only reason I went with them is to pay off my credit card debt that I acquired from my divorce a year ago and some major car repairs. I got the loan back in April for $8,200 and have already paid off over $1000 on it. My credit score is a 790, so I handle my debt quite well, but did not want to deal with the time needed to do the snowball method.

After this fall semester I am taking a break from school so I can focus on my other goals, such as building my emergency fund and regular savings and finish off the loan. I don't need school to get a better job as I love the company I am with and love what I do and there is a lot of growth potential with the company.

lbonga1 · August 2015

amhill87 said: Working a second job is not an option. With being a lead and overtime I work when available, it would not be possible for me to work one.
Secondly, your comment that I should not be touching debt comes off as quite judgmental and I can tell you did not even look up the company I use. Payoff is not a debt consolidation place, they offer loans to consolidate debt into one payment, and the only reason I went with them is to pay off my credit card debt that I acquired from my divorce a year ago and some major car repairs. I got the loan back in April for $8,200 and have already paid off over $1000 on it. My credit score is a 790, so I handle my debt quite well, but did not want to deal with the time needed to do the snowball method.
After this fall semester I am taking a break from school so I can focus on my other goals, such as building my emergency fund and regular savings and finish off the loan. I don't need school to get a better job as I love the company I am with and love what I do and there is a lot of growth potential with the company.

These statements don't make sense to me. Debt consolidation places do exactly what you mentioned: consolidate debt....regardless if it's credit card debt or otherwise. And the point of the snowball method is to pay off debt in less time.

Back in December, you posted that you were on track to pay off your debt by May...were the car repairs what made you acquire more debt? I don't think PP's comments were trying to be judgmental, just trying to get you to see what is realistic. If you're only able to put less than $300/month toward your current credit card debt, it's not realistic to be taking out a big loan on a car.

amhill87 · August 2015

I am referring to the other places that lower the amount you pay. This place gives you a loan for you to pay them all directly yourself.

My income is about $1800 a month and my non-debt living expenses are $1200, so I am able to pay more than $300 a month towards debt, but my work has been trying to minimize ot by hiring more people. My income is before OT, also I did my research and the amount I pay on my loan is cheaper than what I would pay if I was paying all of my minimum balances on the credit cards. My goal was to be paid off in May before the consolidation, but did not happen as I had to take care of car repairs and had not yet really set up my emergency fund or savings.

brij2006 · August 2015

amhill87 said:

I am referring to the other places that lower the amount you pay. This place gives you a loan for you to pay them all directly yourself.

My income is about $1800 a month and my non-debt living expenses are $1200, so I am able to pay more than $300 a month towards debt, but my work has been trying to minimize ot by hiring more people. My income is before OT, also I did my research and the amount I pay on my loan is cheaper than what I would pay if I was paying all of my minimum balances on the credit cards. My goal was to be paid off in May before the consolidation, but did not happen as I had to take care of car repairs and had not yet really set up my emergency fund or savings.

Sorry that you took my comment as judgmental, and that was not the intention. But all of this is exactly why you don't need to get a car payment. Just because your credit score is good, doesn't mean it's okay to go out and take on another payment.

If car repairs are something that pushes back paying off debt by more than 6 months, then something needs to give.

Also, this payoff place you speak of is exactly debt consolidation. They consolidate all of your debt into 1 place, then spread it out over a longer period of time to pay it off. That is why the payments are cheaper than what you were paying with the CC companies directly.

Just for future reference or anyone lurking who may be in this same situation. The best option with CC debt is to call them and negotiate the interest rate. Then start with the smallest one (pay minimum payments on all the rest), and put as much money toward it as possible. When that one is paid off, snowball all of that money onto the next highest amount.

It's just something that you may not have noticed, but your trend of making rash decisions is high. Slow down, take your time, and think things through. Ask yourself, "how much will the affect me getting to my ultimate goal of paying off the CC debt and getting an emergency fund so I don't have to worry as much?"

simplyelise · August 2015

My advice is that you keep paying $300/month on the payoff loan and then you put $300/month plus all your overtime towards saving for a used vehicle. That means you should have at least $2000 to buy a used vehicle next may before your tags expire.

Then you can start putting $600/month plus your overtime towards finishing off the payoff loan.

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